Australia lost their third wicket just before tea when Shane Watson was dismissed on day one of the first Test against Sri Lanka.

Phil Hughes helped the hosts recover from losing opening pair Dave Warner and Ed Cowan with an assured display on the opening day in Hobart.

Hughes edged closer to a century with a patient performance and sits on 82 runs from 161 balls.

Sri Lanka struggled to build on a pair of early wickets after lunch but edged Watson behind from a Chanaka Welegedara delivery late in the second session.

Michael Clarke helped the Aussies steady the ship to reach a score of 193-3 ahead of the first day's final session.